The cost of a surety bond is calculated as a small percentage of the total bond coverage amount — typically 0.5–10%. This means a $10,000 bond policy may cost between $50 and $1,000. For applicants with strong credit, most bond rates are 0.5–4% of the bond amount.

What are the factors determining surety bond cost?

Businesses with a proven track record in their industry may qualify for lower rates. Surety companies consider your business’s financial statements and overall financial health when determining your rate. Once you receive your free quote, you can get your bond quickly and easily.

Financial statements

As much as possible, improve your credit score to receive the lowest premium possible. If you want to get a great price on your next bond, it’s essential to shop around and collect quotes before making a decision. Get your quote from SuretyNow for the most affordable price in the market, any time, any day. If you find a better quote in your search, we’re happy to match it. If you need a surety bond as part of getting your business or individual license, choose “License and Permit Bonds.”

Business Experience & Financial Health

As an example, say you have a score of 620 and are applying for an auto dealer bond. You can expect your rate to fall how much does a 5000 surety bond cost within 2.5% to 5%, resulting in a premium of $25 to $50 for a $1,000 bond. This calculator will provide you with an estimate of the bond premium.

• The cost of the bond – the premium – is usually a percentage of this amount.
• Contractor license bonds are one of the permit bonds required in the construction industry.
• However, specific factors like changes in the construction industry or the overall economy could impact the cost of certain types of bonds.
• If you’re considering getting a surety bond, it’s important to know how the surety bond premiums are calculated to ensure you get the best price possible.
• Some bonds are also priced directly based on the bracket in which your credit score falls.
• This insurance enhances the bond’s credit rating, making it more attractive to investors.

How does bond insurance work?

When you are quoted a surety bond cost, the quote is a one-time payment quote. For instance, if you are quoted $100 for a one-year surety bond, you will only need to pay $100 once, not monthly. If your bond is renewable, then you must pay the premium at the end of each term to renew it. Surety bond premiums are calculated as a small percentage of the bond amount. $5,000 surety bonds typically cost 0.5–10% of the bond amount, or $25–$500.

Renewing A Mechanical Contractor License Bond

• Try the Notary Bond Express® to get your Notary Bond online right now or check Notary Bond Prices in Your State.
• Depending on the type of project, a contractor could have a variety of bonds in play during the course and progress of a project.
• Surety bonds are used in various industries, including construction, healthcare, and government contracting.
• The surety bond market is expected to remain stable in 2024, with modest growth projected.
• We’ve covered how bond amounts, industry risk, credit history, and state laws play significant roles in determining your bond premiums.
• The contractor or principal assumes the obligations to fulfill the contract agreement between them and the owner, while the owner is the recipient of the obligation.

The cost of the bond – the premium – is usually a percentage of this amount. Get the best surety bond price when you choose SuretyBonds.com. We find the lowest bond rates available nationwide — no matter your circumstances.

Try the Notary Bond Express® to get your Notary Bond online right now or check Notary Bond Prices in Your State. Once approved, you can download and print your bond directly from our website, allowing you to focus on running your business without delay.

The cost of a surety bond, often referred to as the bond insurance cost, is typically calculated as a percentage of the total bond amount. This percentage is called the premium rate, and it usually ranges from 0.5% to 15% of the bond amount. Several factors influence this percentage, such as the bond amount, the type of bond, and the applicant’s credit score.